How Long Does It Take To Get Money After A Settlement?

The Timeline for Receiving Settlement Payments

Often, the timeline for receiving a settlement payment causes anxiety among claimants. With bills piling up and perhaps missed work, it is natural to want quick access to your funds. However, the time it takes to process settlement payouts can vary greatly. It is primarily determined by the terms of the agreement, the practices of the involved insurance company, and the efficiency of your attorney.

The procedure, while straightforward, can involve quite a few steps. You may need to sign releases and other documents. The insurer will then process the release and issue a check. After receiving the check, your lawyer will deposit the funds into an escrow account and pay off any liens you might have before you can receive the payout. Legal fees and any other related costs will also be deducted from the settlement amount.

Generally, most personal injury settlements are concluded within about six weeks. If this seems too long, pre-settlement funding is an option. However, remember that each case is unique, so timelines cannot be set in stone.

Most Personal Injury Settlements Finalize in Less Than Six Weeks

Personal injury settlements routinely drag on for months, even years. By the time the insurance company eventually agrees to a settlement, you are likely eager to resolve the case, get your compensation, and start putting that money toward medical bills and other pressing expenses.

Regrettably, the settlement process is more involved than the insurer popping a check in the mail.

While many variables impact this process, most personal injury settlements should finalize in less than six weeks.

Step 1: Sign the Releases and Any Other Documentation

When you reach a settlement with the insurance provider, the attorneys will draft several release forms.

Your circumstances will dictate whether these release forms are straightforward or contain terms and conditions requiring close examination by your attorney.

Often, the two parties will engage in back-and-forth negotiations to finalize the terms of your settlement.

When all negotiations are complete and the release forms are finalized, you need to review and sign them before your settlement can proceed.

Step 2: The Insurance Carrier Processes the Release, Then Cuts a Check

Once the insurer receives these signed release forms, they should process them expediently. At this point, they can issue your settlement check.

The check is typically made payable to both you and your attorney, and it will be mailed to your attorney.

This is a simple enough process that should usually run without interference, but sometimes clerical errors lead to delays in payment.

Step 3: Your Attorney Deposits the Check in an Escrow Account and Then Pays Your Liens

Your lawyer will deposit the insurance check into an escrow or trust account. This is not your attorney’s decision but a mandatory part of the process. Often as soon as the check clears, your lawyer will forward your settlement funds.

In most cases, your counsel will use a portion of your settlement money to pay any liens (unpaid debts). Payments might include:

• Unpaid medical bills
• Medicare
• Medicaid
• Health insurance
• Child support

These liens should all be resolved, often as soon as the settlement funds clear. Ignoring liens from government agencies, insurance carriers, or medical providers can trigger severe penalties.

Step 4: Your Lawyer Also Deducts Legal Fees and Costs Before Cutting a Check

Your attorney pays all liens and then deducts legal costs and fees from your settlement. These legal fees amount to a predetermined percentage of your settlement, which will be outlined in the original attorney-client contract.

Legal costs hinge on many variables specific to your case, including:

• Expert witness fees
• Deposition costs
• Court reporting costs
• Gathering medical evidence and medical records

Your attorney will provide an itemized statement of these legal costs upon request.

The remainder of the settlement is yours now that all fees and liens have been deducted.

What Should I Do if My Settlement Is Significantly Delayed?

In most cases, personal injury victims can expect to receive their settlement within six weeks of negotiations ending.

Sometimes, unexpected delays occur, so what can you do about this?

At a minimum, reach out to your attorney and request an explanation for the delay. Ideally, your lawyer can provide options to expedite the settlement payment.

Although your attorney is not legally obligated, they may agree to issue a partial settlement payment. This gives you access to at least part of your settlement without needing to consider a lawsuit cash advance. Your attorney will retain a portion of the settlement to negotiate any liens.

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